Canada’s corporate ethics watchdog, the Ombudsperson for Responsible Enterprise, has initiated a thorough fact-finding investigation into Zara Canada Inc., amid serious allegations of the company’s involvement with entities employing forced labour in China.
The investigation was prompted by claims put forth by 28 civil society organisations, alleging that Zara Canada maintains supply relationships with three Chinese companies identified as utilising or benefiting from Uyghur forced labour. These allegations, which surfaced in June, have raised concerns about the fashion retailer’s ethical practices and supply chain connections.
“Inditex does not have any commercial ties with any factory in that region and the allegations contained in the report are unfounded. “Our group has a zero-tolerance policy towards any kind of forced labour,” a spokesperson for the company told Sourcing Journal.
Despite Zara Canada’s denial, the Ombudsperson’s investigation aims to thoroughly examine the veracity of these claims and shed light on the extent of the company’s involvement with entities accused of forced labour practices.
This investigation marks the eighth instance in which the Ombudsperson has probed companies for their potential ties to Uyghur forced labour within their supply chains. Previous companies investigated include Ralph Lauren Canada LP, Walmart Canada, Hugo Boss Canada Inc., Diesel Canada Inc., and mining company Gobi Man.
